Continue this process so long as each recalculated earnings per share is

Continue this process so long as each recalculated

This preview shows page 35 - 45 out of 57 pages.

Continue this process so long as each recalculated earnings per share is smaller than the previous amount. LO 9 Compute earnings per share in a complex situation. APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The first step is to determine a per share effect for each potentially dilutive security. Per Share Effect of Options (Treasury-Share Method) , Diluted Earnings per Share Illustration 16-B3 LO 9 Compute earnings per share in a complex situation. APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The first step is to determine a per share effect for each potentially dilutive security. Per Share Effect of 8% Bonds (If-Converted Method) , Diluted Earnings per Share Illustration 16-B4 LO 9 Compute earnings per share in a complex situation. APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The first step is to determine a per share effect for each potentially dilutive security. Per Share Effect of 10% Bonds (If-Converted Method) , Diluted Earnings per Share Illustration 16-B5 LO 9 Compute earnings per share in a complex situation. APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The first step is to determine a per share effect for each potentially dilutive security. Per Share Effect of 10% Convertible Preference Shares (If-Converted Method) , Diluted Earnings per Share LO 9 Compute earnings per share in a complex situation. Illustration 16-B6 APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The first step is to determine a per share effect for each potentially dilutive security. Ranking of per Share Effects (Smallest to Largest) , Diluted Earnings per Share Illustration 16-B7 LO 9 Compute earnings per share in a complex situation. APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The next step is to determine earnings per share giving effect to the ranking Recomputation of EPS Using Incremental Effect of Options Illustration 16-B8 LO 9 Compute earnings per share in a complex situation. The effect of the options is dilutive . APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The next step is to determine earnings per share giving effect to the ranking Recomputation of EPS Using Incremental Effect of 8% Convertible Bonds Illustration 16-B9 LO 9 Compute earnings per share in a complex situation. The effect of the 8% convertible bonds is dilutive . APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The next step is to determine earnings per share giving effect to the ranking Recomputation of EPS Using Incremental Effect of 10% Convertible Bonds Illustration 16-B10 LO 9 Compute earnings per share in a complex situation. The effect of the 10% convertible bonds is dilutive . APPENDIX 16B COMPREHENSIVE EARNINGS PER SHARE EXAMPLE
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The next step is to determine earnings per share giving effect to the ranking Recomputation of EPS Using Incremental Effect of 10% Convertible Preference Shares Illustration 16-B11 LO 9 Compute earnings per share in a complex situation.
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